 "Trump inks AI deal with UAE for 'largest' data centre outside US")
The US and UAE will build a massive data centre in Abu Dhabi to further artificial intelligence capabilities, equipped with 5 gigawatts of capacity, sufficient to power an entire city.
US President Donald Trump and his UAE counterpart, Sheikh Mohamed bin Zayed Al Nahyan, inked a deal during the former’s trip to the country, where the duo announced the development of the largest data centre outside of America. The US Commerce Department said that initially, the facility will start with a 1-gigawatt AI data centre, but will expand to 10 square miles later.
The project is anticipated to broaden the presence of American AI and cloud firms in the Middle East, enhancing their ability to serve the Global South more effectively.
The AI agreement “includes the UAE committing to invest in, build, or finance U.S. data centres that are at least as large and as powerful as those in the UAE,” the White House said.
“The agreement also contains historic commitments by the UAE to further align their national security regulations with the United States, including strong protections to prevent the diversion of US-origin technology,” it added.
Although no companies were named in the deal, Nvidia CEO Jensen Huang was spotted at one of Trump’s meetings in UAE, according to CNN.
“By extending the world’s leading American tech stack to an important strategic partner in the region, this agreement is a major milestone in achieving President Trump’s vision for US AI dominance,” Commerce Secretary Howard Lutnick said in a statement.
Impact Shorts
More ShortsThe campus will be built by Abu Dhabi state-backed firm G42, but U.S. Secretary of Commerce Howard Lutnick said in a release that “American companies will operate the data centers and offer American-managed cloud services throughout the region.”
While Trump has been pushing AI investments to retain its global dominance over the technology, the UAE has also expressed willingness to establish itself as a world leader in AI by 2031.
Meanwhile, such a long-coveted deal is a major win for the UAE, which has been trying to balance its relations with its longtime ally, the US and its largest trading partner, China. It reflects the Trump administration’s confidence that the chips can be managed securely, in part by requiring data centres to be managed by US companies.
With inputs from agencies
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